Approved Minutes – Tuesday, August 29, 2000

The Board met at its offices at 5901 Green Valley Circle, Culver City, at 9:00 a.m. with Chairman Andal, Vice Chairman Parrish, and Ms. Mandel present on behalf of Dr. Connell in accordance with Government Code Section 7.9.

BUSINESS TAXES HEARINGS

Stanley A. Nowak, SR EHC 53-000300-010, -020; 89000970190, 89000970210
2-25-92 to 11-30-93, $19,209.58 Tax, $1,973.52 Penalty
7-1-92 to 3-31-93, $15,468.36 Tax

For Petitioner: Charles Nagel, Attorney
For Sales and Use Tax Department: Sharon Jarvis, Counsel

Contribution: Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Issue: Whether the evidence establishes that petitioner was not a partner predecessor, and thus not responsible for the liability.

Mr. Chiang and Mr. Klehs entered the Board room.

Action: Upon motion of Mr. Klehs, seconded by Mr. Chiang and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board ordered that the petition be submitted for decision.

CORPORATE FRANCHISE AND PERSONAL INCOME TAXES HEARINGS

Yoshinoya West, Inc., 43092
12/31/86, $192,438.00
12/31/87, $397,287.00

For Appellant: Ernie Dronenburg, Representative
Jess B. Penilla, Representative
For Franchise Tax Board: Andrea Chang, Tax Counsel

Contribution: Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Issues: Whether appellant was engaged in a unitary business with its Japanese parent, Yoshinoya D&C., Ltd.
Whether respondent's apportionment of income results in distortion of the unitary group's business activity in California

Appellant's Exhibit:Unities Test (Exhibit 8.6)

Action: Upon motion of Mr. Klehs, seconded by Ms. Mandel and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board ordered that the appeal be submitted for decision.

The Board recessed at 10:25 a.m. and reconvened at 10:40 a.m. with Mr. Andal, Mr. Parrish, and Ms. Mandel present.

BUSINESS TAXES HEARINGS

Jamor Mart, Inc. SR AS 12-608172-010, -020; 89000039660; 89000039670
1-1-91 to 12-31-97, $123,239.98 Tax, $23,583.12 Penalty
Joseph Sternlight, SR AS 53-000091-010; 89000969720
5-1-91 to 12-31-96, $89,697.06 Tax, $22,424.39 Penalty

For Petitioner: Peter S. Muffoletto, CPA
For Sales and Use Tax Department: Warren Astleford, Counsel

Contribution: Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Issues: Whether relief from the penalty for fraud is warranted.
Whether Joseph Sternlight is a responsible party who can be held liable for sales tax during the period commencing May 1, 1991, through December 31, 1996.
Whether petitioners have shown that a deduction for bad debts is warranted.

Mr. Chiang and Mr. Klehs entered the Board room.

Action: Upon motion of Mr. Andal, seconded by Mr. Klehs and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board allowed the taxpayer to submit evidence on bad debts, directing the Appeals Section to review the evidence and return to the Board with a recommendation within 30 days; otherwise redetermine remaining liability.

Quintana Trust, dba Open Liquor, SR EH 99-841828-010; 89002413300
6-1-88 to 12-31-94, $18,780.43 Tax, $6,557.46 Penalty

For Petitioner: LaRue Harcourt
Alice Harcourt
For Sales and Use Tax Department: Warren Astleford, Counsel

Contribution: Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Issue: Whether the Department improperly issued the Notice of Determination at issue in contravention of federal bankruptcy laws.

Action: Upon motion of Mr. Parrish, seconded by Mr. Klehs and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board ordered that the petition be submitted for decision.

Wabash National Corporation, SS OH 11-810586-010; 89000034610
3-1-91 to 12-31-94, $710,761.41 Tax, $13,359.12 Penalty

For Petitioner: Nancy T. Stanislawski, Representative
Richard V. Carlson, Representative
For Sales and Use Tax Department: Jeffrey Graybill, Counsel

Contribution: Disclosures pursuant to Government Code Section 15626: No disqualifying contributions were disclosed.

Issues: Whether the disallowed (20) ex-tax sales of trailers to Swift Transportation Company (Swift) are exempt from the use tax because the trailers were first functionally used outside of California and after entry into California, were then principally used outside of California.
Alternatively, whether the disallowed ex-tax sales of trailers to Swift qualify as exempt under Revenue and Taxation Code Section 6388.5.
Whether sufficient evidence was provided to show that petitioner's purchases of trailers were exempt from tax because the trailers were principally used in interstate commerce.
Whether sufficient evidence was provided to support that petitioner's sale of the leased trailers to its subsidiary, Wabash National Finance Corporation was exempt from tax because the trailers were used principally in interstate commerce.
Whether relief from the penalty for failure to file returns is warranted.

Action: Upon motion of Mr. Chiang, seconded by Mr. Andal and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board ordered that that the petition be redetermined in accordance with the revised recommendation of the Appeals Section as follows: (1) the 20 disallowed ex-tax trailer sales to Swift Transportation Company should be granted under Revenue and Taxation Code Section 6388.5; (2) petitioner should owe use tax based on 27.987% of its cost of $2,342,136.00 for the trailers leased to International Trailer Service (ITS); (3) petitioner should owe tax based on 40.71% of $1,951,780.00 for the sales to its subsidiary, Wabash National Finance Corporation, of trailers leased it ITS; and (4) relief from the failure to file penalty is not warranted.

ABI Systems, Inc., SR AB 12-724489-010; 89000051560
7-1-92 to 9-30-95, $7,960.59 Tax, $0 Penalty

For Petitioner: No Appearance
For Sales and Use Tax Department: Rich Goodrich, Hearing Representative

Contribution: Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Issue: Whether the evidence establishes that the audited cost of taxable merchandise sales is excessive

Action: Upon motion of Mr. Klehs, seconded by Mr. Andal and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board ordered that, in addition to the adjustments previously allowed: (1) the audited cost of taxable sales should be reduced by $20,900.00; (2) the cost of equipment subject to use tax should be increased by $20,900.00; (3) the negligence penalty should be deleted; and (4) otherwise, the tax should be redetermined in accordance with the Appeals Section's recommendation.

Thomas A. Monteleone, SR AC 13-638787-010; 89000061760
4-1-94 to 12-31-96, $14,123.90 Penalty, $0 Penalty

For Petitioner: No Appearance
For Sales and Use Tax Department: Kevin Hanks, Hearing Representative

Action: The Board took no action.

Letter Excellence, Inc., SR AC 13-827269-010, -002; 89000084890, 89000084880
1-1-95 to 9-30-97, $7,165.51 Tax

For Petitioner: Patrick J. Leone, CPA
Dan Bennett, President
For Sales and Use Tax Department: Warren Astleford, Counsel

Contribution: Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Issues: Whether the disallowed labor charges represent taxable fabrication labor, or nontaxable mailing services.
Whether tax erroneously charged and paid by petitioner on exempt printed sales message transactions should be used to offset against the present liability for assembly charges on other transactions.
Whether a refund should be granted for excess tax reimbursement on exempt printed sales message transactions which claimant collected from customers and paid to the state.
Whether relief from the tax on unreported assembly charges, associated penalties, and interest be granted based on petitioner's alleged reliance on oral advice from the Board.

Action: Mr. Parrish moved to grant the petition. Motion failed due to lack of a second.

Upon motion of Mr. Klehs, seconded by Ms. Mandel and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board ordered that the petition be submitted for decision.

Blue Shaw, Inc., SR AC 13-829801-010; 89000085530
4-1-93 to 3-31-96, $24,389.65 Tax, $2,438.99 Penalty

For Petitioner: R. Harrison Shaw, President
For Sales and Use Tax Department: Kevin Hanks, Hearing Representative

Contribution: Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Issues: Whether the understatement of taxable sales was established in accordance with the facts.
Whether an additional allowance for self-consumed taxable merchandise is warranted.
Whether relief from the negligence penalty is warranted.

Action: Upon motion of Mr. Klehs, seconded by Mr. Parrish and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board ordered that the petition be submitted for decision.

SARBCO, Inc., SY AS 13-836817-010; 89000087120
10-1-92 to 12-31-95, $196,328.14 Tax, 19,632.84 Penalty

For Petitioner: No Appearance
For Sales and Use Tax Department: Kevin Hanks, Hearing Representative

Action: The Board took no action.

Reza Mohammed Nafez, SR EAA 53-000168-010; 89000969950
7-30-88 to 12-31-92, $778,827.52 Tax, $194,706.88 Penalty

For Petitioner: Patrick J. Leone, CPA
Reza Nafez
For Sales and Use Tax Department: Kevin Hanks, Hearing Representative

Contribution: Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Issue: Whether the petitioner is liable for the liability established against the corporation.

Action: Upon motion of Mr. Klehs, seconded by Mr. Parrish and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board ordered that the petition be redetermined with a $50,000.00 reduction with respect to the fraud penalty, otherwise, redetermined as recommended by the Appeals Section.

Lupe A. Rivas, SR AP 14-666112-010; 89000111310
10-1-92 to 9-30-95, $11,621.61 Tax, $0 Penalty

For Petitioner: Lupe A. Rivas
Dolly Avila, Relative
Michael J. Vega, CPA
For Sales and Use Tax Department: Kevin Hanks, Hearing Representative

Contribution: Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Issues: Whether the markup used in the audit computations is excessive.
Whether "non-saleable" supplies should be deleted from audited purchases prior to adding the markup.
Whether adjustments for increases over the audit period in the ending inventory are warranted.
Whether nontaxable wire-in sales are substantially greater than allowed in the audit.
Whether an increase in the spoilage allowance is warranted.
Whether the deposit analysis and the economic reality analysis performed by the Department overstate petitioner's tax liability.

Action: Upon motion of Mr. Andal, seconded by Mr. Chiang and duly carried, Mr. Andal, Mr. Parrish, Mr. Chiang and Ms. Mandel voting yes, Mr. Klehs voting no, the Board ordered the reduction of the taxable measure by 50%.

The Board recessed at 12:10 p.m. and reconvened at 1:40 p.m. with Mr. Andal, Mr. Klehs, Mr. Chiang and Ms. Mandel present.

Michael J. and Patricia D. Maichele, SR AB 14-739232-010: 89000122370
SR AB 14-666658-010; 89000111360
7-1-93 to 6-30-96, $22,369.13 Tax, $2,392.25 Penalty

For Petitioner: Patrick J. Leone, CPA
For Sales and Use Tax Department: Kevin Hanks, Hearing Representative

Contribution: Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Issues: Whether the measure of understated taxable sales was established in accordance with the facts.
Whether relief from the negligence penalty is warranted.

Action: Upon motion of Mr. Klehs, seconded by Ms. Mandel and unanimously carried, Mr. Andal, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, Mr. Parrish absent, the Board ordered that the negligence penalty be deleted.

Mr. Parrish entered the Board room.

Upon motion of Mr. Klehs, seconded by Mr. Chiang and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board ordered that the petition be submitted for decision.

FINAL ACTION ON PETITIONS HEARD AUGUST 29, 2000

Upon motion of Mr. Klehs, seconded by Mr. Andal and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board ordered that the appeal of Yoshinoya West, Inc., 43092, be denied sustaining the action of the Franchise Tax Board.

Upon motion of Mr. Klehs, seconded by Mr. Ms. Mandel and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board ordered that the petition of Stanley A. Nowak, SR EHC 53-000300-010, -020; 89000970190, 89000970210, be redetermined as recommended by the Appeals Section.

Upon motion of Mr. Klehs, seconded by Mr. Andal and duly carried, Mr. Andal, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, Mr. Parrish voting no, the Board ordered that the petition of Quintana Trust, dba Open Liquor, SR EH 99-841828-010; 89002413300, be redetermined as recommended by the Appeals Section.

Mr. Parrish moved to grant the petition of Letter Excellence, Inc., SR AC 13-827269-010, -002; 89000084890, 89000084880. The motion was seconded by Mr. Andal but failed to carry, Mr. Parrish, and Mr. Chiang voting yes, Mr. Andal, Mr. Klehs, and Ms. Mandel voting no.

Upon motion of Mr. Klehs, seconded by Ms. Mandel and duly carried, Mr. Andal, Mr. Klehs, and Ms. Mandel voting yes, Mr. Parrish and Mr. Chiang voting no the Board ordered that the petition be redetermined as recommended by the Appeals Section.

Upon motion of Mr. Andal, seconded by Mr. Klehs and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board ordered that the petition of Blue Shaw, Inc., SR AC 13-829801-010; 89000085530, be redetermined as recommended by the Appeals Section.

Mr. Parrish stated for the record that he would have voted with the majority on Michael J. and Patricia D. Maichele, SR AB 14-739232-01;, 89000122370, SR AB 14-666658-01; 89000111360, in deleting the negligence penalty.

Upon motion of Mr. Andal, seconded by Mr. Klehs and duly carried, Mr. Andal, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, Mr. Parrish voting no the Board ordered that the petition of Michael J. and Patricia D. Maichele, SR AB 14-739232-010; 89000122370, SR AB 14-666658-010; 89000111360; be redetermined as recommended by the Appeals Section.

LEGAL APPEALS MATTERS, CONSENT

The Board deferred consideration of the following: Sidney L. and Michiko Soffer, SR EAA 24-926310-010;89000492790; and Sergio Godinez, SR AP 99-255467-010;89002169520.

With respect to the Legal Appeals Matters Consent Agenda, upon a single motion of Mr. Parrish, seconded by Mr. Klehs and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board made the following orders:

Patricio M. Suazo, SX AS 11-666753-010; 89000015670
7-1-94 to 6-30-97, $7,091.19 Tax, $709.16 Penalty

Considered by the Board:Hearing Notice Sent – No Response

Action: Redetermine as recommended by the Appeals Section.

Liz Silkitwa Montana, SR AR 11-811067-010; 89000034670
1-1-96 to 5-13-97, $12,524.80 Tax, $3,536.98 Penalties

Considered by the Board:Hearing Notice Sent – No Response

Action: Redetermine as recommended by the Appeals Section.

Mary L. Marquez, SY AC 13-808016-010; 89000080980
5-1-86 to 6-30-95, $216,128.30 Tax, $54,032.34 Penalty

Considered by the Board:Hearing Notice Sent – No Response

Action: Redetermine as recommended by the Appeals Section.

Mission Country Photofinishing, Inc. SR AR 15-637159-010; 89000136930
10-1-94 to 9-30-97, $9,494.99 Tax, $2,935.15 Penalty

Considered by the Board:Hearing Notice Sent – No Response

Action: Redetermine as recommended by the Appeals Section.

Felicitas Chavez Gonzalez, SR AP 17-738741-010; 89000207680
1-1-94 to 6-30-96, $5,378.95 Tax, $537.90 Penalty

Considered by the Board:Hearing Notice Sent – No Response

Action: Redetermine as recommended by the Appeals Section.

Multi-Media Technology, Inc., SR FHB 99-177783-010; 89002134160
10-1-92 to 3-31-94, $8,155.87 Tax, $7,275.24 Penalty

Considered by the Board:Hearing Notice Sent – No Response

Action: Deny the late protest as recommended by the Appeals Section.

Mike Mestrop Kanoyan, FV EHB 17-812980-010; 89000223700
2-1-94 to 2-28-94, $5,407.38 Tax, $1,351.85 Penalty

Considered by the Board:Hearing Notice Sent – No Response

Action: Redetermine as recommended by the Appeals Section.

Local Neon Company, Inc., SS AB 18-617062-020; 89000229180
4-1-94 to 3-31-97, $45,227.82 Tax, $0 Penalty

Considered by the Board:Hearing Notice Sent – No Response

Action: Redetermine as recommended by the Appeals Section.

Galaxie's Millers Landing, Inc., SY AP 23-795041-002; 89000415790
10-1-94 to 6-30-97, $4,238.88

Considered by the Board:Hearing Notice Sent – No Response

Action: Deny the claim for refund as recommended by the Appeals Section.

Niel Cliffton Borden, SR EA 23-855860-010; 89000427930
7-1-94 to 6-30-97, $2,057.94 Tax, $205.8 Penalty

Considered by the Board:Hearing Notice Sent – No Response

Action: Redetermine as recommended by the Appeals Section.

Samuel Hagop Dournazian, SR EH 23-884625-010; 89000435520,
5-1-92 to 6-30-95, $846,230.70 Tax, $98,662.45 Penalty
FP HQ 98-500525-010; 89002237630
5-1-92 to 6-30-95, $2,798,198.80 Tax, $699,549.74 Penalty

Considered by the Board:Hearing Notice Sent – No Response

Action: Redetermine as recommended by the Appeals Section.

Anup Mohindra, et al, SR EA 24-813260-010, -020, -030; 89000466040 –060, -080
1-1-91 to 1-31-93 and 1-1-97 to 9-30-97, $3,086.06 Tax, $0 Penalty

Anju Kapoor, SR EA 97-617443; 42960, SN EA 52-006214-010, 020; 89000965840
1-1-93 to 12-31-96, $33,841.18 Tax, $8,460.32 Penalty
ATAM Restaurant Services, Inc., SR EA 97-196033-010, -020; 89002073910, -930
1-26-95 to 9-30-97, $31,168.67 Tax, $7,020.67 Penalty

Considered by the Board:Hearing Notice Sent – No Response

Action: Redetermine as recommended by the Appeals Section.

Advanced Micro Software, Inc., SR EA 24-881715-020, -001; 89000480760, 89000480740
7-30-88 to 12-31-92, $829,711.60 Tax, $290,399.14 Penalties

Considered by the Board: Hearing Notice Sent – No Response

Action: Deny the claim for refund and reduce the audit liability as recommended by the Appeals Section.

Sidney L. and Michiko Soffer, SR EAA 24-926310-010; 89000492790
4-1-93 to 4-30-96, $172,398.64 Tax, $17,239.89 Penalty

Considered by the Board: Hearing Notice Sent – No Response

Action: The Board took no action.

Gene Warren Summy, Jr., SR EA 24-958510-010; 89000502440
10-1-94 to 9-30-97, $72,392.07 Tax, $14,478.45 Penalties

Considered by the Board: Hearing Notice Sent – No Response

Action: Redetermine as recommended by the Appeals Section.

Robert Harry Rosinski, SX FH 25-849393-010; 89000588540
7-1-91 to 5-15-93, $31,530.40 Tax, $7,159.86 Penalties

Considered by the Board: Hearing Notice Sent – No Response

Action: Redetermine as recommended by the Appeals Section.

Dong and Kee Juhn, TK MT 44-036507-010; 89000949700
5-1-91 to 6-30-94, $4,933.66 Fee, $493.38 Penalty

Considered by the Board:Hearing Notice Sent – No Response

Action: Redetermine as recommended by the Appeals Section.

Maurice Malek, DS 72-102693-010; 89000973050
12-1-93 to 12-31-94, $1,498.56 Tax

Considered by the Board: Hearing Notice Sent – No Response

Action: Redetermine as recommended by the Appeals Section.

Isaac James Oshana, SA UT 82-678650-010; 89001160740
1/24/98, $643.50 Tax, $0 Penalty

Considered by the Board: Hearing Notice Sent – No Response

Action: Redetermine as recommended by the Appeals Section.

Shakee Assadourian, SR AP 97-166590-010; 89002069220
10-1-94 to 9-30-97, $27,421.51 Tax, $2,742.17 Penalty

Considered by the Board: Hearing Notice Sent – No Response

Action: Redetermine as recommended by the Appeals Section.

J.D. Enterprises, Inc., SR EA 99-252524-010; 89002168250
1-1-94 to 3-31-97, $64,085.91 Tax, $0 Penalty

Considered by the Board: Hearing Notice Sent – No Response

Action: Redetermine as recommended by the Appeals Section.

Sergio Godinez, SR AP 99-255467-010; 89002169520
7-1-93 to 6-30-96, $10,651.37 Tax, $2,130.24 Penalty

Considered by the Board: Hearing Notice Sent – No Response

Action: The Board took no action.

La Estrella Market, Inc., SR AA 99-263979-010; 89002173500
7-1-93 to 6-30-96, $26,721.59 Tax

Considered by the Board: Hearing Notice Sent – No Response

Action: Redetermine as recommended by the Appeals Section.

Container Components, Inc., SR AC 13-810914-010; 89000081430
4-1-95 to 3-31-98, $12,161.90 Tax

Considered by the Board: Hearing Notice Sent – Appearance Waived

Action: Redetermine as recommended by the Appeals Section.

Harry K. Chan and Stephen K. Fong, SR AA 14-781159-010; 89000131350
1-1-93 to 9-15-95, $0.00

Considered by the Board: Hearing Notice Sent – Appearance Waived

Action: Redetermine as recommended by the Appeals Section.

Se Jin and In Khi Lee, SR AP 17-745775-010; 89000208750
1-1-94 to 12-31-96, $11,513.61 Tax, $1,151.41 Penalty

Considered by the Board: Hearing Notice Sent – Appearance Waived

Action: Redetermine as recommended by Appeals Section.

James Edward Locke, SR AP 17-756701-010; 8900021054
10-1-94 to 9-30-97, $4,395.52 Tax, $469.28 Penalty

Considered by the Board: Hearing Notice Sent – Appearance Waived

Action: Redetermine as recommended by Appeals Section.

Remal Yap Bangasan, SY AP 17-801353-010; 89000220680
1-1-94 to 3-31-97, $3,582.07 Tax, $398.19 Penalty

Considered by the Board: Hearing Notice Sent – Appearance Waived

Action: Redetermine as recommended by the Appeals Section.

Rosedale Equipment Rental, Inc., SY AR 22-787484-010; 89000378900
10-1-92 to 6-30-96, $135,872.26 Tax, $13,587.24 Penalty

Considered by the Board: Hearing Notice Sent – Appearance Waived

Action: Redetermine as recommended by the Appeals Section.

Albert L. and Rita M. Wilsey, SP UT 82-578886-010; 89001089510
2/28/93, $0.00 Tax, $0 Penalty

Considered by the Board: Hearing Notice Sent – Appearance Waived

Action: Redetermine as recommended by the Appeals Section.

Boss Disks, SR AS 99-249915-010; 89002167260
1-1-93 to 9-30-96, $245,525.26 Tax, $26,326.35 Penalties

Considered by the Board: Hearing Notice Sent – Appearance Waived

Action: Redetermine as recommended by the Appeals Section.

Fibertron Corporation, SR EA 11-736145-010; 89000022240
7-1-93 to 6-30-96, $39,879.71 Tax

Considered by the Board: Hearing Notice Sent – Hearing Request Withdrawn

Action: Redetermine as recommended by the Appeals Section.

Jagg, Inc., SR EAA 24-847499-010; 89000473410
10-1-94 to 9-30-97, $48,999.34 Tax, $4,899.95 Penalty

Considered by the Board: Hearing Notice Sent – Hearing Request Withdrawn

Action: Redetermine as recommended by the Appeals Section.

Mark Gilpin, SX BH 53-000146-010; 89000969870
7-1-90 to 6-30-94, $0.00 Tax

Considered by the Board: Hearing Notice Sent – Hearing Request Withdrawn

Action: Cancel the determination as recommended by the Appeals Section.

Mark Gilpin, SR BH 53-000131-010; 89000969830
4-1-96 to 8-3-96, $5,177.22 Tax, $5,177.22 Penalty

Considered by the Board: Hearing Notice Sent – Hearing Request Withdrawn

Action: Redetermine as recommended by the Appeals Section.

FRANCHISE AND INCOME TAX MATTERS, CONSENT

The Board deferred consideration of the following: Thomas L. and Elizabeth R. Brown, 97A-0164; 89002466700; Rebecca B. Delliskave, 99A-0440;17874; Judi Egolf, 32612; and Maude Washington, 35986.

With respect to the Franchise and Income Tax Matters Consent Agenda, upon a single motion of Mr. Andal, seconded by Mr. Parrish and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board made the following orders:

Thomas L. and Elizabeth R. Brown; 97A-0164; 89002466700
1989, $4,176.00 Tax, $1,044.00 Penalty
Herbert E. Long Jr., 97A-0181; 30450
1989, $12,284.00 Tax, $3,071.00 Penalty

Action: Defer consideration of this matter.

Gary R. Burns, 27791
1995, $12,180.75 Tax
1996, $ 3,691.50 Tax

Action: Sustain the action of the Franchise Tax Board.

Rebecca B. Delliskave, 99A-0440, 17874
1997, $1,866.00 Tax, $1004.00 Penalties

Action: Defer consideration of this matter.

Huong Do, 47676
1998, $240.00 Tax

Action: Reverse the action of the Franchise Tax Board.

Judi Egolf, 32612
1995, $209.00 Tax

Action: Defer consideration of this matter.

David Joy, 28480
1995, $221.00 Tax, $100.00 Penalty

Action: Sustain the action of the Franchise Tax Board.

Edward E. Lane III, 28418
1997, $1 or more

Action: Sustain the action of the Franchise Tax Board.

Robert and Michelle McDonald, 28414
1996, $478.61 Penalties

Action: Reverse the $103.00 cost recovery fee, otherwise, sustain the action of the Franchise Tax Board.

Robert Merendino, 99A-0466; 17728
1997, $1,137.00 Tax

Action: Sustain the action of the Franchise Tax Board.

Daniel J. Reid, 99A-0471; 17528
1997 $1,226.00 Tax

Action: Sustain the action of the Franchise Tax Board.

Veronica Rodriguez, 99A-0470; 17529
1997, $124.00 Tax

Action: Sustain the action of the Franchise Tax Board.

Khalid Omar Siddiqi, 41862
1997, $182.00 Tax

Action: Sustain the action of the Franchise Tax Board.

Robert B. and Melen C. Silver, 99A-0482; 18701
1986, $11,080.00 Tax, $5,388.00 Penalty

Action: Sustain the action of the Franchise Tax Board.

Maude Washington, 35986
1998, $1.00 or more

Action: Defer consideration of this matter.

Stephen P. and Vickery M. Cherner, 98A-1312; 89002466800
1990, $65,258.00 Tax, $32,629.00 Penalties
Robert T. and Joann Winzinger, 98A-0928; 89002466240
1990, $44,777.00 Tax, $11,194.25 Penalties

Action: Deny the petition for rehearing.

Jeffrey D. and Dorothy M. Hadden, 98A-1296, 89002467830
1994, $1,974.00
1995, $1,922.00
1996, $1,590.00

Action: Deny the petition for rehearing.

Thomas and Denise Taylor, 98A-1300; 89002465980
1994, $1,642.00 Tax

Action: Deny the petition for rehearing.

John and Julie Tomlinson, 98A-1180; 89002466030
1993, $54,738.00 Tax, $10,947.60 Penalty

Action: Deny the petition for rehearing.

Roger and Angela Welch, 99A-0052; 89002466190
1994, $781.00 Tax

Action: Deny the petition for rehearing.

SALES AND USE TAX MATTERS, CONSENT

With respect to the Sales and Use Taxes Matters Consent Agenda, upon a single motion of Mr. Andal, seconded by Mr. Klehs and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, with Mr. Chiang not participating in AT & T Capital Services Corp., SR S OHA 020-621568; 15689, the Board made the following orders:

Los Angeles Harbor Department, SR AB 016-300005; 17204
7-1-94 to 6-30-97, $1,278,750.00

Action: Approve revised redetermination as recommended by staff.

AT & T Capital Services Corporation, SR S OHA 020-621568; 15689
7-1-94 to 12-31-97, $81,675.10

Action: Approve revised redetermination as recommended by staff. Mr. Chiang not participating.

North Coast Medical Inc., SR GH 026-747270; 89000661740
7-1-93 to 6-30-96, $99,284.96

Action: Approve revised redetermination as recommended by staff.

Interleaf, Inc., SC OHB 030-660291; 16485
10-1-93 to 3-31-97, $84,775.42

Action: Approve revised redetermination as recommended by staff.

Poly-Tech Inc., SC OH 030-666073; 89000843270
7-1-94 to 12-31-96, $147,006.90

Action: Approve revised redetermination as recommended by staff.

The Glidden Company, SR Z OHA 030-676609; 89000854360
1-1-94 to 12-31-96, $123,446.97

Action: Approve revised redetermination as recommended by staff.

Arrhythmia Research Tech, Inc., SC OHC 097-038783; 89002042710
7-01-90 to 12-31-97, $86,745.45

Action: Approve revised redetermination as recommended by staff.

Edleman Corporation, SR GHD 099-238980; 30685
7-1-96 to 3-31-99, $93,744.19

Action: Approve revised redetermination as recommended by staff.

Lopez Tires, Inc., SR Y AS 099-293512; 89002186680
1-1-94 to 3-31-97, $66,142.25

Action: Approve revised redetermination as recommended by staff.

Gencoat, Inc., SC OHA 099-592127; 89002320650
7-1-95 to 6-30-98, $107,855.82

Action: Approve revised redetermination as recommended by staff.

SALES AND USE TAX CREDITS, CANCELLATIONS AND REFUNDS MATTERS, CONSENT

The Board deferred consideration of the following United Retail Incorporated, SR Y OHB 030-675203; 30647.

With respect to Sales and Use Taxes Credits, Cancellations and Refunds Matters Consent Agenda, upon a single motion of Mr. Parrish, seconded by Mr. Klehs and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board made the following orders:

MULTIQUIP INC., SR AB 016-653093; 76352
10-1-95 to 12-31-98; $57,592.06

Action: Approve the credit.

HOLCHEM Inc., SR Y AC 024-759370; 26998
1-1-95 to 12-31-97, $113,592.70

Action: Approve the credit and cancellation.

Thousand Oaks Printing Specialists Inc., SR AC 015-786318; 37934
10-1-96 to 9-30-99, $53,586.30

Action: Approve the refund.

Pentagram Design, Inc., SR BH 019-676042; 63130
1-1-00 to 3-31-00, $203,333.32

Action: Approve the refund.

Fresno Community Hospital, SR Y ARF 022-052762, 78929
4-1-96 to 3-31-99, $128,975.09

Action: Approve the refund.

Modtech Inc., SR Y EH 023-762962; 89000411240
1-1-95 to 3-31-98, $311,043.30

Action: Approve the refund.

21st Century Bob, SR FH 025-731357; 77911
1-1-96 to 12-31-98, $138,130.54

Action: Approve the refund.

Siemens Energy & Automation Inc., SR Z OHC 030-635686; 63145
1-1-00 to 3-31-00, $117,811.32

Action: Approve the refund.

Columbia Pictures Home Video Inc., SR AS 030-654299; 89000834030
7-1-91 to 12-31-94, $528,334.26

Action: Approve the refund.

Neff Rental, Inc., SR Y EH 097-121563; 77376
7-1-98 to 9-30-98, $85,315.50

Action: Approve the refund.

Merial Lmited, SC OHB 097-204458; 89002075260
4-1-98 to 6-30-98, $59,917.73

Action: Approve the refund.

Salomon Analytics Inc., SC OHB 099-720297; 89002371170
4-1-95 to 12-31-97, $55,594.36

Action: Approve the refund.

Headquarters Advertising Inc., SR BH 099-838714; 49282
10-1-96 to 9-30-99, $145,771.67

Action: Approve the refund.

United Retail Incorporated, SR Y OHB 030-675203; 30647
7-1-96 to 12-31-98, $399,813.20

Action: The Board took no action.

SPECIAL TAXES MATTERS CREDITS, CANCELLATIONS, AND REFUNDS MATTERS, CONSENT

With respect to the Special Taxes Credits, Cancellations, and Refunds Matters Consent Agenda, upon a single motion of Mr. Chiang, seconded by Ms. Mandel and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board made the following orders:

Parallel Products Inc., CR ET 002-001353; 79139
$140,747.84

Action: Approve the refund.

Jetro Lov, Inc., CR ET 002-001632; 79141
$63,850.40

Action: Approve the refund.

Snoozie Shavings Inc., IF MT 059-005486; 79828
$64,691.65

Action: Approve the refund.

Lane Suneast Inc., CR ET 002-001151; 79467
$284,563.75

Action: Approve the refund.

SECTION 6355 COINS AND BULLION BULK SALE ADJUSTMENT

Ramon Hirsig, Deputy Director, Sales and Use Tax Department, reported that by September 1 of each year, the Board of Equalization is required to index the coins and bullion bulk sale threshold for inflation, based on the (June to June) California consumer Price Index (CCPI), as mandated by Senate Bill 213 (Chapter 977 statutes of 1993).

Upon motion of Mr. Klehs, seconded by Mr. Parrish, and unanimously carried, Mr. Klehs, Mr. Andal, Mr. Parrish, Mr. Chiang and Ms. Mandel voting yes, the Board approved the recommended index.

Mr. Klehs and Mr. Chiang left the Board room.

BUSINESS TAXES HEARINGS

Tien Shui Liu dba Golden Hunan Chinese Restaurant, SR AC 13-750753-010; 89000072690
1-1-94 to 6-30-97, $129,822.90 Tax, $32,445.80 Penalty

For Petitioner: Fred Shemirani, POA
For Sales and Use Tax Department: Kevin Hanks, Hearing Representative

Contribution: Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Issues: Whether any adjustments to the audited measure of tax are warranted.
Whether any relief from the fraud penalty is warranted.

Action:Upon motion of Mr. Mandel, seconded by Mr. Andal and unanimously carried, Mr. Andal, Mr. Parrish, and Ms. Mandel voting yes, Mr. Chiang and Mr. Klehs absent, the Board ordered that the petition be submitted for decision.

The Board recessed at 2:14 p.m. and reconvened at 2:25 p.m. with Mr. Parrish, Mr. Chiang and Ms. Mandel present.

Ocean-Granada, Inc., SR AB 14-685780-010; 89000114090
1-1-92 to 12-31-94, $26,558.23 Tax, $2,655.83 Penalty

For Petitioner: John Garcia, President
George Fisher, CPA
For Sales and Use Tax Department: Kevin Hanks, Hearing Representative

Contribution: Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Issues: Whether the measure of tax was established in accordance with the facts.
Whether relief from the penalty for negligence is warranted.

Mr. Klehs and Mr. Andal entered Board room.

Action: Upon motion of Ms. Mandel, seconded by Mr. Chiang and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board ordered that the petition be submitted for decision.

Mr. Klehs left the Boardroom.

Jim Miller, SR AA 14-776250-010; 89000130340
7-1-92 to 10-31-95, $50,240.14 Tax, $5,024.02 Penalties

For Petitioner: No Appearance
For Sales and Use Tax Department: Kevin Hanks, Hearing Representative

Action: The Board took no action.

J.M. Peters, Company, Inc., SP UT 82-634890-010; 89001115720
Due 5-31-95, $96,875.00 Tax

For Petitioner: Ira D. Lebovic, Attorney
Brian Godwin, Chief Pilot
For Sales and Use Tax Department: Warren Astleford, Counsel

Contribution: Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Issue: Whether the purchase and use of the aircraft qualify for exemption for aircraft leased to common carriers

Action:Upon motion of Mr. Chiang, seconded by Mr. Parrish and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Chiang and Ms. Mandel voting yes, Mr. Klehs absent, the Board ordered that the petition be submitted for decision.

Alfonso Hernandez, dba Hacienda Del-Rey, SR AS 18-665740-010; 89000234330
1-1-92 to 12-31-95, $44,060.70 Tax, $4,406.10 Penalty

For Petitioner: Ed Rodriguez, CPA
For Sales and Use Tax Department: Kevin Hanks, Hearing Representative

Contribution: Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Issues: Whether the audited costs of goods were established in accordance with the facts.
Whether the audited amounts of food sold at discounted selling prices were established in accordance with the facts
Whether the audited markups for beer, wine, and distilled spirits were established in accordance with the facts
Whether relief is warranted form the 10 percent penalty added for negligence.

Action:The Board took no action.

Richard S. Nathanson, SR AB 18-683090-020; 89000236420
4-1-94 to 3-31-97, $15,236.25 Tax, $1,523.64 Penalty

For Petitioner: Louis Samuel, Attorney
For Sales and Use Tax Department: Rich Goodrich, Hearing Representative

Contribution: Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Issues: Whether the cost of living amounts in the audit were established in accordance with the facts.
Whether the catering sales included in the audit were nontaxable party coordinator services.
Whether relief is warranted from the 10 percent penalty.

Action: Upon motion of Mr. Chiang, seconded by Ms. Mandel and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Chiang and Ms. Mandel voting yes, Mr. Klehs absent, the Board ordered that the petition be submitted for decision.

Brooks Brothers Interiors, SS ARH 22-638102-010
10-1-93 to 9-30-96, $15,065.59 Tax

For Petitioner: Bert Brooks, President
James M. Brown, CPA
For Sales and Use Tax Department: Sharon Jarvis, Counsel

Contribution: Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Issues: Whether petitioner's carpet installation contracts with Mercy Hospital (Mercy) and Memorial Hospital (Memorial) were time and materials contracts rather than lump-sum contracts.
Whether petitioner is entitled to relief pursuant to Revenue and Taxation Code Section 6596.

Mr. Klehs entered the Board room.

Mr. Andal left Board room.

Action: Upon motion of Mr. Klehs, seconded by Mr. Parrish and unanimously carried, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, Mr. Andal absent, the Board ordered that the petition be granted.

Mr. Andal entered Board room.

Mr. Andal stated he would have voted with the majority to grant the petition of Brooks Brothers Interiors, SS ARH 22-638102-010; 89000360470.

McPhillips Motors Inc., SR EH 23-804358-010; 89000417350
4-1-94 to 3-31-97, $113,782.13 Tax, $0 Penalty

For Petitioner: Geroge Arzoo, CPA
For Sales and Use Tax Department: Jeffrey Graybill, Counsel

Contribution: Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Issue: Whether the evidence shows that the audited measure of tax is excessive.

Action: Upon motion of Mr. Klehs, seconded by Mr. Parrish and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board ordered that the petition be submitted for decision.

Arun Kumar Puri, LTD. PTN., SR – EAA 24-750704-030; 89000455700
7-1-93 to 6-30-96, $17,599.52 Tax, $1,759.95 Penalty

For Petitioner: Arun K. Puri, General Partner
Tony Azavedo, Accountant
For Sales and Use Tax Department: Kevin Hanks, Hearing Representative

Contribution: Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Issues: Whether the audited understatement of taxable sales is excessive.
Whether relief from the negligence penalty is warranted.

Action: Mr. Parrish moved to reduce the measure of tax by 10%. The motion was seconded by Mr. Andal but failed to carry, Mr. Andal, Mr. Parrish voting yes, Mr. Klehs, Mr. Chiang and Ms. Mandel voting no.

Upon the motion of Mr. Klehs, seconded by Mr. Andal and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board ordered that the petition be submitted for decision.

Evening Rose, Inc., SR EAA 24-852363-010; 89000474370
4-1-93 to 3-31-96, $42,959.00 Tax, $4,295.91 Penalty

For Petitioner: Michael J. Cappelli, Attorney
For Sales and Use Tax Department: Warren Astleford, Counsel

Contribution: Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Issue: Whether petitioner or the "Night Girls" were the retailers of flowers sold to restaurant and club customers.

Action: Upon motion of Mr. Andal, seconded by Mr. Parrish and duly carried, Mr. Andal, Mr. Parrish, Mr. Chiang and Ms. Mandel voting yes, Mr. Klehs voting no, the Board ordered that the negligence penalty be deleted.

Upon the motion of Mr. Parrish, seconded by Mr. Andal and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board ordered that the petition be submitted for decision.

Mohamed A. Mandour & Adel A. Mandour dba Harbor Tobacco, SR EA 97-130743-010; 89002062780
6-1-97 to 9-7-97, $2,312.94 Tax, $489.35 Penalty

For Petitioner: Mohamed Mandour
For Sales and Use Tax Department: Warren Astleford, Counsel

Contribution: Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.

Issues: Whether petitioner is liable for the predecessor's outstanding liability, and if so, what is the amount of the liability.
Whether petitioner should be relieved of the penalties assessed against the predecessor pursuant to the revisions to Title 18, California Code of Regulations, Section 1702, subdivision (d) (2).

Action: Upon motion of Mr. Klehs, seconded by Mr. Parrish and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board ordered that negligence penalty be deleted.

Upon motion of Mr. Klehs, seconded by Mr. Parrish and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board ordered that the petition be submitted for decision.

The Board recessed at 5:00 p.m. and reconvened at 5:10 p.m. with Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel present.

FINAL ACTION ON PETITIONS HEARD AUGUST 29, 2000

Upon motion of Ms. Mandel, seconded by Mr. Chiang and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board ordered that the petition of Tien Shui Liu dba Golden Hunan Chinese Restaurant, SR AC 13-750753-010; 89000072690, be redetermined as recommended by the Appeals Section.

Upon motion of Ms. Mandel, seconded by Mr. Chiang and duly carried, Mr. Andal, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, Mr. Parrish voting no, the Board ordered that the petition of Ocean-Granada, Inc., SR AB 14-685780-010; 89000114090, be redetermined as recommended by the Appeals Section.

Upon motion of Mr. Parrish, seconded by Mr. Andal and duly carried, Mr. Andal, Mr. Parrish, and Ms. Mandel voting yes, Mr. Klehs and Mr. Chiang voting no, the Board ordered that the petition of J.M. Peters, Company, Inc., SP UT 82-634890-010; 89001115720, be granted.

BUSINESS TAXES APPEALS HEARINGS

Mohamed Seirafi, dba Quixtop, SR AP 17-707443-020, -001; 89000203510, -490
7-1-93 to 9-30-96, $45,308.67 Tax, $4,530.89 Penalty

For Petitioner: No Appearance
For Sales and Use Tax Department: Kevin Hanks, Hearing Representative

Contribution: Disclosures pursuant to Government Code Section 15626: No contributions forms were filed.

Issues: Whether petitioner has provided evidence that the audit contains errors that overstate the measure of tax.
Whether the audited soda markup used in the audit is excessive.
Whether relief from the 10% penalty for negligence is warranted.

Action: Upon motion of Ms. Mandel, seconded by Mr. Chiang and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board ordered that the claim for refund be denied and redetermine as recommended by the Appeals Section.

Shing Hing Metal & Jewelry, Inc., SR AP 17-812680-010; 89000223590
1-1-93 to 3-31-96, $68,529.26 Tax, $6,852.96 Penalty

For Petitioner: No Appearance
For Sales and Use Tax Department: Kevin Hanks, Hearing Representative

Contribution: Disclosures pursuant to Government Code Section 15626: No contributions forms were filed.

Issue: Whether the evidence shows that exempt sales in interstate commerce exceed 13.71 % of total sales of jewelry as allowed in the reaudit computations.

Action: Upon motion of Ms. Mandel, seconded by Mr. Parrish and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, and Ms. Mandel voting yes, Mr. Chiang not participating, the Board ordered that the petition be redetermined as recommended by the Appeals Section.

FINAL ACTION ON PETITIONS HEARD AUGUST 29, 2000

Upon motion of Mr. Chiang, seconded by Ms. Mandel and duly carried, Mr. Andal, Mr. Chiang and Ms. Mandel voting yes, Mr. Klehs and Mr. Parrish voting no, the Board ordered that the petition of Richard S. Nathanson, SR AB 18-683090-020; 89000236420, be redetermined as recommended by the Appeals Section.

Upon motion of Mr. Chiang, seconded by Mr. Parrish and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board ordered that the petition of McPhillips Motors Inc., SR EH 23-804358-010; 89000417350, be redetermined as recommended by the Appeals Section. The Board directed staff to work out a payment plan.

Upon motion of Mr. Klehs, seconded by Mr. Chiang and duly carried, Mr. Andal, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, Mr. Parrish voting no, the Board ordered that the petition of Arun Kumar Puri, LTD. PTN., SR –EAA 24-750704-030; 89000455700, be redetermined as recommended by the Appeals Section.

Upon motion of Mr. Klehs, seconded by Mr. Chiang and duly carried, Mr. Andal, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, Mr. Parrish voting no, the Board ordered that the petition of Evening Rose, Inc., SR EAA 24-852363-010; 89000474370, be redetermined as recommended by the Appeals Section.

Upon motion of Mr. Klehs, seconded by Mr. Parrish and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board ordered that the petition of Mohamed A. Mandour & Adel A. Mandour dba Harbor Tobacco, SR EA 97-130743-010; 89002062780, be redetermined as recommended by the Appeals Section.

The Board adjourned at 5:15 p.m.

The foregoing minutes are adopted by the Board on December 14, 2000